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Why Is Gold Holding Steady? Fed Policy & Dollar Weakness Explained | XAU/USD Technical Outlook

Gold's Resilience Amid Shifting Macro Winds

The Cardano coin ada price prediction 2030precious metal demonstrates remarkable stability in Wednesday's Asian session, trading within tight parameters after securing consecutive weekly gains. This consolidation phase emerges as the US dollar attempts a modest recovery from Tuesday's September lows, while buoyant equity markets create countervailing pressure on traditional safe-haven assets.

Dovish Fed Expectations Anchor Gold Prices

Market participants continue pricing in a completed Fed tightening cycle following Tuesday's cooler-than-expected CPI print. The October inflation data showed annual price growth slowing to 3.2%, marking the softest reading in two years. Treasury yields consequently retreated across the curve, with the 10-year benchmark hovering near two-month lows - creating ideal conditions for non-yielding gold to shine.

Technical Landscape: Key Levels to Watch

From a chart perspective, the $1,970-1,971 zone represents immediate resistance, with a decisive break potentially opening the path toward $1,980. Beyond this psychological barrier lies the $1,991-1,992 technical hurdle, with the $2,000 round number and September's $2,009-2,010 peak waiting in the wings. Support structures emerge at $1,950, backed by the critical 200-day SMA ($1,935) and a cluster of moving averages near $1,925.

Upcoming Catalysts: US Data in Focus

Traders await fresh directional cues from Wednesday's US economic calendar, featuring:

  • PPI data (expected +0.1% MoM vs prior +0.5%)
  • Retail sales (forecast -0.3% vs previous +0.7%)
  • Core retail sales (projected flat MoM)

These releases could either reinforce or challenge the prevailing market narrative about slowing US economic momentum and its implications for Fed policy.

Asian Economic Data Provides Mixed Signals

China's October economic indicators presented a nuanced picture, with industrial output (+4.6% YoY) and retail sales (+7.4% YoY) exceeding expectations while fixed asset investment (+2.9% YoY) slightly missed forecasts. The mixed data package appears insufficient to significantly alter global risk sentiment or gold's fundamental positioning.

Market Psychology: Bullish Undercurrents Remain

Despite near-term consolidation, the broader technical and fundamental backdrop continues favoring gold bulls. The combination of peaking US rates, a softening dollar, and elevated geopolitical uncertainty creates a supportive environment for the yellow metal. However, traders should remain vigilant about potential shifts in risk appetite that could temporarily cap upside potential.